Despite these positive outcomes, United Community Banks (NYSE:UCB) experienced weaker-than-expected deposit growth and a slight dip in the noninterest-bearing (NIB) mix. Looking to the future, the bank's initial outlook for 2025 includes expectations of mid single-digit annualized loan growth, a 5-10 basis points expansion in NIM in the first quarter with further improvements anticipated later in the year, and stable credit metrics and costs.In response to these developments, Raymond (NSE:RYMD) James has revised its earnings per share (EPS) estimates upwards, mainly reflecting stronger revenue and lower credit costs compared to previous models. The analyst's commentary emphasized a positive view of the risk-reward balance for United Community Banks, citing the company's ability to benefit from a deregulatory environment, pursue opportunistic mergers and acquisitions, and continue expanding its market share within its attractive regional footprint. The stock has shown strong momentum, with a 14.32% return over the past six months and a P/E ratio of 21.5. For deeper insights into UCBI's valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro. The stock has shown strong momentum, with a 14.32% return over the past six months and a P/E ratio of 21.5. For deeper insights into UCBI's valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
Despite these positive outcomes, United Community Banks experienced weaker-than-expected deposit growth and a slight dip in the noninterest-bearing (NIB) mix. Looking to the future, the bank's initial outlook for 2025 includes expectations of mid single-digit annualized loan growth, a 5-10 basis points expansion in NIM in the first quarter with further improvements anticipated later in the year, and stable credit metrics and costs.In response to these developments, Raymond James has revised its earnings per share (EPS) estimates upwards, mainly reflecting stronger revenue and lower credit costs compared to previous models. The analyst's commentary emphasized a positive view of the risk-reward balance for United Community Banks, citing the company's ability to benefit from a deregulatory environment, pursue opportunistic mergers and acquisitions, and continue expanding its market share within its attractive regional footprint. The stock has shown strong momentum, with a 14.32% return over the past six months and a P/E ratio of 21.5. For deeper insights into UCBI's valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
Despite these positive outcomes, United Community Banks experienced weaker-than-expected deposit growth and a slight dip in the noninterest-bearing (NIB) mix. Looking to the future, the bank's initial outlook for 2025 includes expectations of mid single-digit annualized loan growth, a 5-10 basis points expansion in NIM in the first quarter with further improvements anticipated later in the year, and stable credit metrics and costs.
In response to these developments, Raymond James has revised its earnings per share (EPS) estimates upwards, mainly reflecting stronger revenue and lower credit costs compared to previous models. The analyst's commentary emphasized a positive view of the risk-reward balance for United Community Banks, citing the company's ability to benefit from a deregulatory environment, pursue opportunistic mergers and acquisitions, and continue expanding its market share within its attractive regional footprint.
In other recent news, United Community Banks, Inc. reported fourth-quarter earnings that surpassed analyst expectations. The regional bank posted adjusted earnings per share of $0.63, notably higher than the consensus estimate of $0.56. However, revenue for the same period was $239.47 million, slightly below the projected $243.04 million.
Net income for the quarter rose to $75.8 million, a significant increase from $14.1 million in the same period the previous year. This increase was primarily attributed to higher net interest income, increased noninterest income, and a reduced provision for credit losses.
The company also reported a decrease in net interest margin by 7 basis points from the third quarter to 3.26%. Despite this, credit quality remained stable with net charge-offs dropping to 0.21% of average loans, marking the lowest level in two years. Lastly, for the full year, United Community Banks reported net income of $252 million and diluted earnings per share of $2.04, up from the previous year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.